27th Jul 2006 07:01
Kingfisher PLC27 July 2006 EMBARGOED UNTIL 0700 HOURSThursday 27 July 2006 Kingfisher plc Pre-close trading update to 15 July 2006 11 weeks ended 15 July 2006 24 weeks ended 15 July 2006Retail Sales % Total Change % LFL % Total % LFL Change Change Change UK 1.3 -1.3 -2.3 -4.3France 6.9 1.3 7.2 1.5Rest of Europe (1) 26.6 8.4 27.9 9.2Asia (2) 76.2 9.0 73.9 10.1 Total 8.7 1.0 6.0 -0.6 All figures are on a constant currency basis, joint venture and associate salesare not consolidated (1) Rest of Europe sales includes Castorama Poland, Castorama Italy, Brico Depot Spain, B&Q Ireland and Castorama Russia.(2) Asia sales include B&Q China and B&Q Home in South Korea. Gerry Murphy, Group Chief Executive, said: "Kingfisher's second quarter featured a strong international performance andearly signs of progress at B&Q in the UK despite a continuing weak consumermarket for home improvement. "Kingfisher's international development programme has continued on track thisyear with 20 new stores opened so far and good like-for-like growth from storesopen for more than one year. In France, Castorama and Brico Depot havedelivered solid growth in a more competitive market. Our established businessesin Poland and Italy performed well, as did the enlarged B&Q China businesshaving completed the integration of the OBI stores acquired last year. "The UK consumer home improvement market has not yet returned to growth despitea pick-up in general household consumption. Against this tough background B&Qbenefited from targeted promotions and new in-store 'Service Squads.'" Kingfisher plc will announce its Interim Results for the 6 months to 29 July2006 on 14 September 2006. All figures and comments below refer to the 11 weeks to 15 July 2006 UK B&Q total sales were flat (-2.4% LFL) in the quarter to date reflectingcontinuing market weakness. Gross margin percentage is expected to be similarto the same quarter last year. Kingfisher's UK Trade businesses delivered strongtotal sales growth of 27.5% (+15.3% LFL) with the performance of the newScrewfix Trade Counters being particularly encouraging. FRANCE In a more competitive French market Castorama sales grew by 2.8% (+0.5% LFL)despite the closure of three stores prior to their re-opening as Brico Depots.Brico Depot sales grew 13.0% (+2.5% LFL) and the business made good progress inimplementing a new SAP information technology platform to support future growth. REST OF EUROPE Sales in other European markets grew strongly with 8.4% LFL and new storescombining to deliver 26.6% total sales growth. Castorama in Poland and Italyboth delivered solid sales growth despite challenging local markets. Storeexpansion continued including Castorama's second store in Russia which opened inJuly in St Petersburg and the first Brico Depot store in Poland. ASIA B&Q China sales were ahead 74.4% (+9.0% LFL) driven by new store openings andthe acquisition of the OBI China stores last year. The programme to integratethe former OBI stores was completed during the quarter, ahead of schedule. Enquiries: Ian Harding, Group Communications Director 020 7644 1029 Nigel Cope, Head of Communications 020 7644 1030 Kingfisher plc is Europe's leading home improvement retailer and the thirdlargest in the world, with over 680 stores in 11 countries in Europe and Asia.Its main retail brands are B&Q, Castorama, Brico Depot and Screwfix Direct.Kingfisher also has a 21% interest in, and strategic alliance with, Hornbach,Germany's leading DIY Warehouse retailer, with over 120 stores in Germany andseven neighbouring countries. Further copies of this announcement are available at www.kingfisher.com or byapplication to: The Company Secretary, Kingfisher plc, 3 Sheldon Square, London,W2 6PX. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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